Bachman, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent: $$\begin{array} { | l | r | }
\hline \text { Acquisition of land } & \$ 23,000 \
\hline \text { Surveys and legal fees } & 1500 \
\hline \text { Land clearing } & 400 \
\hline \text { Fencing } & 7000 \
\hline \text { Install lighting and signage } & 1860 \
\hline
\end{array}$$ What amount should be recorded as the cost of the land in the corporation's books?

Question

Bachman, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent: $$\begin{array} { | l | r | } 
\hline \text { Acquisition of land } & \$ 23,000 \
\hline \text { Surveys and legal fees } & 1500 \
\hline \text { Land clearing } & 400 \
\hline \text { Fencing } & 7000 \
\hline \text { Install lighting and signage } & 1860 \
\hline
\end{array}$$ What amount should be recorded as the cost of the land in the corporation's books?

Quizplus · Accepted Answer

The cost of the land should be recorded as $24,900. This is because the amounts spent in the first quarter do not include any costs related to land. Therefore, the cost of the land would be the initial purchase price, which is $24,900 according to the information provided.

Bachman, Inc What Amount Should Be Recorded as the Cost of the First